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Prohibited strategies: What you should avoid

Prohibited strategies: What you should avoid

Learn about strategies that are not allowed such as probabilistic trading, high risk, and Martingale.

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Written by Support Team
Updated this week

At Impulse World, we strive to maintain a fair, ethical, and professional trading environment. To achieve this, we have identified certain strategies and practices that we consider harmful to the integrity of our platform and the professional development of our traders. It is crucial that you know and avoid these prohibited strategies to keep your account in good standing and develop sustainable trading skills. ​

1. Probabilistic Trading 🎲

What is it?

Probabilistic trading refers to strategies based purely on the probabilities of success in each phase, without solid technical or fundamental analysis. Its sole purpose is to quickly approve evaluations and eventually withdraw significant profits from funded accounts. ​

Characteristics of Probabilistic Trading

  • Acquisition of multiple accounts in a short period

  • Seeking quick approval of evaluations

  • Taking excessive risks

  • Undertaking operations with a risk higher than the expected benefit

  • Deliberate failure of some accounts

  • Inconsistent trading patterns

  • Lack of a coherent trading strategy

Why it is prohibited

This practice does not represent consistency in trading nor does it seek to properly manage funds over time. It is based on the idea that the probabilities of success will eventually occur, becoming non-speculative and completely random trading. ​

2. High Risk Strategies 🔥

What is it?

High Risk strategies involve "All In" management practices, where the trader makes impulsive decisions risking almost completely their loss limit in a single operation or a set of operations that form an intention. ​

Characteristics of High Risk

  • Excessive risk in individual operations or as a whole

  • Ignoring market conditions such as gaps or slippage

  • Excessive dependence on luck

  • Lack of adequate risk analysis

Why it is prohibited

These practices expose traders to significant losses and do not promote sustainable risk management in the long term. ​

3. Martingale Strategy 🔄

What is it?

The Martingale strategy involves increasing the investment after each losing operation to recover all previous losses or increase profits when a winning operation finally occurs. ​

Characteristics of Martingale in trading

  • Doubling the investment after each loss or operation with a negative floating

  • Expectation that an eventual winning operation will cover all losses

  • Risk of exponentially large losses

Why it is prohibited

Martingale can lead to catastrophic losses and does not incorporate adequate risk management practices. ​

Consequences of using prohibited strategies ⚠️

The use of any of these prohibited strategies may result in:

  • Cancellation of operations

  • Reverting the trader to evaluation or restarting the evaluation

  • Reduction of payment

  • Rejection of payment

  • Platform ban in more serious cases

Payment Reduction Structure 📉

In case of non-compliance with policies, the following payment reduction structure applies:

  • 25% Reduction: For a first minor infraction.

  • 50% Reduction: For more serious or recurring infractions.

  • Payment Rejection: For cases of serious or repeated infraction.

  • Complete Platform Ban: For very serious infractions or continuous recidivism.

Conclusion 🎯

At Impulse World, we value integrity, consistency, and the development of genuine trading skills. Prohibited strategies not only put your account at risk, but also go against the principles of responsible and sustainable trading that we promote.

We encourage you to develop trading strategies based on solid analysis, prudent risk management, and a deep understanding of the markets.

Remember, success in trading is not about shortcuts or tricks, but about skill, discipline, and consistency.

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